Legal Question in Business Law in California

Re: What Rights do I Have???

Covenant not to compete are unfavored in the law; verbal contracts can be enforced. With these two concepts you see you can prevail but have an uphill battle unless you have some good evidence. Sounds like you should confer with a proper attorney.

Joel Selik

800-894-2889

www.4thelaw.com

Re: What Rights do I Have???

You have several issues to contend with in this case. The biggest issue is the fact that this dispute is with a family member. The most important question is whether you are willing to sue a family member. Don't forget that it is not just the relationship with THIS brother that is at issue. But, your other relatives will also likely be affected by your suing (going to war) with your brother.

With respect to the legal issues involved, there are several. First, the issue of a verbal contract. Verbal contracts can certainly be as binding as written agreements. THe problem with verbal agreements is that each party has their own idea of what the terms of the agreement are.

Second, the issue of non-compete agreements: Non-compete agreements are typically unenforceable in California. With that said, there are certain exceptions such as where you sell your interest in a company. THe idea is that you not sell a business and then open up a competing shop across/down the street.

If your brother does open such a shop you have several potential causes of action in a lawsuit against him including misrepresentation, breach of contract, unfair business practices.

You definitely should retain an attorney to deal with this issue. It is possible that a threatening letter from an attorney may be enough to frighten your brother into opening up his own shop further away.

J. Caleb Donner

LEGAL WARRIORS (R)

805-494-6557

Re: What Rights do I Have???

The fact that you have entered into a verbal contract with your brother does not necessarily destroy your case, it just makes it difficult to prove.

Generally, arrangements in contracts should be in writing, however, there are some terms that can be left out so long as it is reasonable. Whether is non-compete clause is a reasonable term to be left out is a matter of fact that can be decided by the trier of fact (jury or judge).

However, your brother's ignorance of the law may benefit you in that if you send a letter with some legal authority it may do the trick. I am not attempting to "plug" myself, but the truth of the matter is that laymen treat letters with much more seriousness when addressed by an attorney, as opposed to a non-attorney.

I truly hope that you can resolve this matter, as I have dealt with a similar circumstance in my life, prior to becoming an attorney.

If I can be of any assistance, please do not hesitate to call or shoot me an e-mail.

Good luck